CONV LOAN + MONEY LENDER ?

3 Replies

Would it be a good idea if I would to purchase a Home under a conventional loan and seek out a private money lender to help fund the Rehab cost ?? Has anybody else used this strategy ? Or is there a better strategy for somebody wanting to get into the fix-n-flip business ?

@Jesse Barahona the idea that you will be needing rehab money will lead me to believe that you will proably not be able to get a convetional loan on the home if it is subject to repairs. The home must pass an *** is appriasal, so if there is non cosmetic work to be done you will more than likely not qualify for that property. You are better off doing the reverse.

Originally posted by @Jesse Barahona :

Would it be a good idea if I would to purchase a Home under a conventional loan and seek out a private money lender to help fund the Rehab cost ?? Has anybody else used this strategy ? Or is there a better strategy for somebody wanting to get into the fix-n-flip business ?

Some people use conventional funding and then put a HELOC on another property, sometimes their owner occupied property, to bring the first property up to speed. Others get a hard money loan for acquisition and rehab and once the property is stabilized, they refinance it either to a conventional loan (depending on seasoning) or a portfolio lender with less seasoning.

@Jesse Barahona

If you are just getting started and have 4 or less financed properties including subject, you can use a renovation loan if you intend on holding the property. Conventional financing doesn’t like fix and flips to sell right away.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here